Answer:
a.
PV = $25000
b.
PV one year from today = $27000
Explanation:
a.
A perpetuity is a series of cash flows that are constant in nature, occur after equal interval of time and are for an infinite period of time. A growing perpetuity is a perpetuity that grows at a proportionate rate for an infinite period of time. The formula to calculate the present value of a growing perpetuity is,
PV = CF1 / r - g
Where,
- CF1 is the cash flow in the coming period or period 1
- r is the required rate of return or interest rate
- g is the growth rate of perpetuity
PV = 1000 / (0.12 - 0.08)
PV = $25000
b.
After the first payment is made, the value of the growing perpetuity can be calculated using CF2. The value that will come will be the value of perpetuity 1 year from today.
PV one year from today = CF2 / (r - g)
PV one year from today = 1000 * (1+0.08) / (0.12 - 0.08)
PV one year from today = $27000
Answer:
Letter b is correct. <u>Time frame.</u>
Explanation:
The SMART system is defined as an aid tool for achieving goals. It is a tool that can be used both by an individual and in corporations.
In order to achieve a goal, it is necessary to have the ideal planning of the set of actions that will contribute to the achievement.
Therefore, each letter of the word SMART corresponds to a meaning relevant to the effective implementation and achievement of a goal
S: specific. When drawing up a goal you must be direct and specific.
M: Measurable. To achieve goals, it is necessary to use a tangible indicator that assists the measurement.
A: Achievable. A goal must be planned according to the real possibility of being achieved.
R: Relevant. Goals must be relevant and create positive results for a person or organization.
T: Time. It is necessary to determine a time for the goal to be achieved. In the question above, Amy lacked the planning for the deadline for achieving the goal, because without it there are great chances that the goal will not be taken seriously and not met.
Answer:
A corporation has the ability to attract capital more than the limited partnership
Explanation:
Corporation is defined as a group of people or company that come together to operate a business as a single entity with the approval of the government through incorporation.
Being a legal entity on its own , ownership is separated from the owners as the business itself can be held legally liable and it also pay income tax on the profits.
One of the advantages of corporation over the other forms of business is the ability to attract capital through issuing of share stocks , which form the basis of the size of ownership of each member.
Climate change and government action
Answer:
1. $1,016.25
2. $1,035.30
Explanation:
Dollar coupon interest = Par value * (1+inflation/2)*coupon rate/2
1. Dollar coupon interest = 50000* (1+3.25%/2)*4%/2
Dollar coupon interest = 50,000*(1+3.25%/2)*4%/2
Dollar coupon interest = 50,000*1.01625*0.02
Dollar coupon interest = $1,016.25
2. Dollar coupon interest = 50,000*(1+3.25%/2)*(1+3.75%/2)*4%/2
Dollar coupon interest = 50,000*1.01625*1.01875*0.02
Dollar coupon interest = 1035.3046875
Dollar coupon interest = $1,035.30